VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 22, 2012) - Edgewater Exploration Ltd. (TSX VENTURE:EDW.V - News)(OTCQX:EDWZF - News) ("Edgewater" or the "Company") is pleased to announce it has completed the earn-in on the Enchi Gold Project ("the Project") under the terms of the Option Agreement dated May 5, 2010 with a subsidiary of Kinross Gold Corp. (TSX:K)(NYSE:KGC - News). As a result, Edgewater now holds a 51% participating interest in the Enchi Gold Project, and local subsidiaries of Edgewater and Kinross (holding the remaining 49%) have entered into a joint venture agreement and will now work to form a joint venture company ("JVCO") to further advance the exploration and development of the Project. The parties' respective 51-49 interests are subject to a 10% carried interest held by the Government of Ghana.
George Salamis, President and CEO of Edgewater stated: "We are pleased to have completed our earn-in on the Enchi gold project and look forward to advancing the property in conjunction with Kinross who operates, through a local subsidiary, the Chirano gold mine located north of Enchi. The Enchi gold project hosts widespread gold mineralization similar in style to gold zones being mined at Chirano and we are currently conducting resource delineation drilling on three advanced gold targets."
Edgewater and Kinross will now share all future exploration and development expenditures pro-rata. Kinross and Edgewater have approved a $3.0 million exploration budget for the first six months of 2012. Edgewater will continue to be the operator of the Project for as long as Edgewater holds the largest equity stake in the JVCO.
Exploration and drilling are on-going on the Project. The current work program includes line cutting, geological mapping, geochemical sampling and trenching as well as a 10,000 metre drilling program currently underway with one RC drill rig. Drilling is focused on delineating extensions to three known gold targets (Boin, Nyam, and Sewum) and includes drilling along strike and down dip of the currently outlined gold zones. Work is also advancing on the maiden NI 43-101 resource estimate which is scheduled to be completed in 2012 by independent consultant Tetra Tech. Additional exploration on the Project includes target definition and follow-up on priority areas generated from the airborne geophysical survey completed in 2011.
About Edgewater Exploration Ltd.
Edgewater is a mineral development and exploration company focused on the development of precious metal properties. Edgewater has an experienced mine building and operating team with a track record of success. The Company is currently developing the Corcoesto Gold Project in northwest Spain, and exploring the Enchi Gold Project in Ghana, West Africa.
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Edgewater Exploration Ltd.